Home Risk management Rina Index- What is Rina Index?

Rina Index- What is Rina Index?

Rina Index is a performance metric that measures the risk to return ratio. Rina index was created by RINA systems in an attempt to find a performance metric that takes time, drawdown, and profit into consideration.

Below we will go into how the Rina Index is calculated and how you can use it in your investments.

Rina Index Definition

Rina Index works is a performance metric that can be used by traders or investors to calculate their risk-adjusted returns. One of the benefits of RINA index compared to other performance metrics, like the net profit/drawdown metric, is that it also includes the time in the market in the calculation. In other words, Rina Index is a good alternative to many simpler performance metrics.

Rina Index Calculation

The Rina Index formula is listed below:

RINA Index = (Net Profit – Net Profit in Outliers)/(Average Drawdown*Percent Time in the Market)